Former FTX Executives and Promoters To Pay $1.35 Million in Lawsuit Settlement Deal
Following Sam Bankman-Fried’s sentencing, former FTX executives and promoters agreed to a $1.3 million class action lawsuit settlement, according to court documents filed yesterday.
Former head of engineering for FTX, Nishad Singh, Alameda Research CEO, Caroline Ellison, chief technological officer for FTX, Gary Wang, and seven promoters of the bankrupt exchange have all agreed to forfeit a total sum of $1.3 million following claims that they participated in and perpetuated ringleader Sam Bankman-Fried’s multi-billion dollar fraud on FTX customers.
In addition to having “pled guilty in the criminal proceedings against them,” FTX insiders “have agreed to full restitution and forfeiture” of the designated sum.
The agreement will allow Judge Lewis A. Kaplan, who presided over the U.S. government’s case over Sam Bankman-Fried case, to decide “how the FTX victim funds recovered from them will be provided to the FTX victims.”
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